- GfK
Consumers' morale in Germany reached the highest level since 2001, as optimistic economic outlook and low inflation persuaded consumers to open their wallets. The GfK consumer sentiment gauge rose to 10.2 in May, up from 10.1 in the preceding month. Also, consumers' economic expectations rebounded in May, rising 3 points to 38.3 points, GfK said. Consumer spending in Germany overtook exports as the country's economic growth engine, in line with a constantly strengthening labour market and rising incomes making consumers willing to spend lavishly. Yet, GfK's sub-index measuring personal income expectations slightly declined in May amid rising energy prices and expectations of higher inflation.
Meanwhile, consumer confidence in the Euro zone's second biggest economy, France, dropped slightly in the current month, according to INSEE. The gauge eased to 93 in May, down from 94 a month earlier, snapping a steady period of increases started last October. Consumers' assessment of their recent financial situation also deteriorated slightly. The monthly report also indicated that fears of unemployment declined. Fewer households surveyed said prices have risen recently, but inflation expectations climbed in May, Insee added. The index hit an all-time low of 79 in May and June 2013, while the highest level of 125 was reached in January 2001.
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